Meger Manufacturing Uses the Direct Labor Cost Method for Applying

question 65

Multiple Choice

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production.The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $700,000,respectively.Actual direct labor cost and factory overhead were $1,100,000 and $825,000,respectively. ​
What was Meger's predetermined factory overhead rate?

• A)70.0%
• B)82.5%
• C)63.6%
• D)133.0%

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Definitions:

Judicial Review

The power of courts to declare void laws and executive actions that they find to be unconstitutional, maintaining a check on government power.

Administrative Remedies

Legal measures that can be taken within the confines of a government agency's rules and regulations, often before seeking judicial intervention.

Arbitrary

Decisions or actions taken without any reasonable, logical, or fair justification.

Capricious

Characterized by sudden changes in attitude or behavior without apparent reason; unpredictable.